Geoff Grant, the California-based chief investment officer of Peloton, plans to launch LiquidMacro in September, just seven months after Peloton’s $2bn ABS fund became the largest European hedge fund failure, losing everything. The move has prompted surprise from several Peloton investors, with one saying it was “gutsy, to say the least”.

The new fund is being selectively pitched to investors but is likely to start with money mostly from family and friends of Mr Grant and his team of nine, who previously made up Peloton’s Santa Barbara office.

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Another Peloton investor said some investors might think Mr Grant was a good bet because he had “learnt a lesson” from the collapse.

“But people are also big, big suckers for a guy who made Goldman [Sachs] partner,” he said. “The view is that you have got to be super-brilliant to get there.”

We hope for their sake that he earned more of a lesson than the LTCM guys did.